Panaji: Goa’s pharmaceutical industry is feeling the heat of the ongoing conflict between US-Israel and Iran, according to the Goa Pharmaceutical Manufacturers Association (GPMA).
While the state remains an export hub for over-the-counter medicines and formulations, the industry body noted on Wednesday that the sector is being adversely affected by cost increases in raw material, packaging and freight.
President of GPMA Pravin Khullar said that while export volumes remain steady due to the critical nature of the goods, companies are facing significant price pressures.
The impact on pricing is primarily driven by higher rates for raw material and petro-based packaging, alongside a sharp appreciation of the Dollar, which has risen to Rs 95 from Rs 87 in the past six months.
Additionally, transportation costs have climbed by 10-15% due to higher shipment and air freight rates, forcing companies to seek longer, alternative routes to avoid war zones. Despite these pressures, the industry has not passed these cost increases on to consumers, leaving retail medicine prices unchanged for the time being.
The GPMA also noted that the ongoing LPG crisis has not severely impacted operations, as factories in the state rely on electricity, solar power, biomass briquettes, and diesel generators. To maintain fire safety and pollution standards, many firms use external food suppliers who have switched to simpler menus to manage the commercial LPG shortage. This resilience comes at a time when Goa’s pharma exports have shown strong performance, reaching Rs 6,527.1 crore in 2023-24 – a 22% growth over the previous year.
Currently, the state ranks sixth in all-India pharma exports, contributing 5.6% to the national total and hosting a wide range of multinational, private and public sector manufacturing facilities.
